Rookie Preforclosure Buyer Needs Advice.
I have just begun to studying how to buy houses at wholesale value and sell them at retail value. One issue that I am on the fence about is whether I should bird dog my first deal in order to make some cash for the soft costs that would be incurred from doing a deal as an investor, or whether I should just go ahead and do the first deal as an investor, which would require me to take on the full burden of the loan. I am very cash poor and I live pay check to pay check. Therefore, the prospect of taking a bath on my first deal weighs on my mind.
I know that RE inherently has risks, but perhaps I should go for it all the way and do the refurbishment and sell the house myself the first time that I find an owner who will sell me the house (assuming, or course, that the numbers pencil out) rather than just referr the deal to an investor.
I will be seeking out homes in the Sacramento County market. My risk is minimized because of several factors: low interested rates; lots of buyers, good equity in the housing market, record number of defaults within the county. With all this in mind, maybe I should just go all the way and do the firrst deal as an investor. Do I want to do all the work that will lead me to an owner who will sign a contract to sell , then pass on the deal to some investor who will make at least a net profit of $15k?
What would you guys do? Or, what have you guys done on your first time out as a buyer/investor? (Please keep in mind that I live pay check to pay check.) 
If you are planning on rehabbing the house, assuming it needs it, it will be hard with no cash.
You might want to birddog in exchange for money and experience.
keep in mind though, bird dogging is illegal in CA.
Your last name isn't Lopez is it?
what does bird dog mean>?????????/
There are many things to consider here but most of all it is your persistance and courage that gets you somewhere in life. If you have the courage to fail but the persistance to keep on trying you will succeed. You should try to make money on your first deal but accepting the fact that the law of averages say that there are some losers and there are some winners will give you the courgage you need to go on with life. Learn what you can to prevent fatal mistakes but go with experience to make your profits.
I would definately start out by doing the deal yourself. No risk no reward. Make sure you run the numbers though. Over and over again. The numbers done lie. Every house has a range of value. Assume the lowest of everything. Assume that costs are the highest then add 10 percent! If your conservative numbers are good then the investment is probably a winner.
Go get em!! GOOD LUCK!